Sri Lanka budget deficit 7.9-pct of GDP in 2010: central bank

Apr 11, 2011 (LBO) – Sri Lanka’s budget deficit fell to 7.9 percent of Gross Domestic Product in 2010 from 9.9 percent in 2009, Swarna Gunaratne, additional director of the central bank’s economic research department said. The deficit was better than the 8.0 percent of GDP that had been expected, she told a news conference held to mark the launch of the central bank’s annual report.

Total government revenue rose 17 percent to 818.2 billion rupees in 2010 from the year before.

“The pickup in domestic economic activity
and the strong recovery in imports increased
government revenue in nominal terms above
the original target set in the budget for 2010,” the annual report said.

Revenue as a percentage of GDP increased to 14.6 percent in 2010 from 14.5 percent in the previous year. Total government expenses fell to 22.9 percent of GDP in 2010 from 24.9 percent of GDP in 2009.

Total expenses rose to 1,280.2 billion rupees in 2010 from 1,201.9 billion the year before.

“Government expenditure was maintained
within the original budgetary targets for
2010 with the strict monitoring of recurrent
expenditure, while maintaining capital expenditure for the accelerated implementation of planned infrastructu